Spain Data Center Market Size & Share Analysis - Growth Trends and Forecast (2026–2031)

AI adoption in Spain is growing rapidly, with companies increasingly using AI to optimize operations, improve efficiency, and drive innovation across the digital infrastructure sector. The growing use of AI across industries is also supporting demand for advanced data center infrastructure and computing capacity.

Spain’s healthcare system is adopting AI to improve patient care and optimize cancer treatment, while also addressing challenges related to an aging population and rising healthcare needs. In addition, the Spanish government approved the AI Strategy 2024 to strengthen supercomputing capabilities, promote Spanish language models, and support the ethical and transparent deployment of AI.

Spain is advancing its AI ecosystem through government initiatives, AI-focused data centers, and growing adoption across sectors such as healthcare and technology. These developments are expected to support digital transformation and increase demand for data center infrastructure in the country.

Liquid cooling is emerging as an important technology for managing rising heat loads in data centers, particularly with the growing deployment of AI, Machine Learning (ML), and high-density computing workloads. As traditional air-cooling systems face limitations in handling higher heat densities, data center operators are increasingly exploring liquid cooling solutions for more efficient thermal management.

Liquid cooling uses fluids such as water or dielectric fluids to transfer heat more efficiently than conventional air-cooling systems. The two main approaches are direct-to-chip cooling, which uses cold plates to remove heat directly from high-performance components, and immersion cooling, where IT equipment is submerged in dielectric fluids. Some data centers are also adopting rear-door heat exchangers to improve cooling efficiency.

Liquid cooling can improve data center efficiency, support sustainability by reducing cooling-related energy consumption, and provide better thermal management for high-density workloads. It can also reduce fan noise and support more efficient operation of advanced computing infrastructure.

The adoption of liquid cooling is expected to increase in Spanish data centers as AI and High-Performance Computing (HPC) workloads continue to raise cooling requirements. The growing need for efficient heat management, improved performance, and scalability for next-generation technologies is expected to drive further investments in direct-to-chip, immersion cooling, and other advanced cooling solutions across Spain.

Power availability and network outages remain critical challenges in the Spain data center market, driven by rising energy demand, aging infrastructure, and increasing data traffic. As data centers increasingly support services such as cloud computing and IoT, high traffic volumes during peak periods can lead to network congestion, outages, and reduced performance.

For instance, in January 2025, an outage at Orange Spain disrupted around half of the company’s network traffic after a compromised RIPE account was used to manipulate its internet infrastructure. The incident highlights the importance of strong cybersecurity measures and resilient network infrastructure for maintaining reliable digital services.

Spain is addressing power availability challenges through increased renewable energy generation, investments in power infrastructure, and the adoption of sustainable battery energy storage solutions. Data centers are also exploring alternatives such as Hydrotreated Vegetable Oil (HVO) to reduce reliance on conventional diesel for backup power.

Data center operators are further strengthening network resilience through redundant systems, collaborations with subsea cable operators, fiber network upgrades, and edge computing to reduce latency. These measures, along with greater reliance on centralized and resilient facilities, are expected to help mitigate network outage risks and support reliable data center operations.

Water scarcity has become a significant concern in Spain, particularly in the southern and southeastern regions, where prolonged droughts and changing climate conditions are putting pressure on water resources. Population growth, agricultural demand, and climate variability are contributing to declining water availability in reservoirs and rivers, creating challenges for water-intensive industries such as data centers.

Data centers require water for cooling systems that regulate the heat generated by servers. Cooling towers, heat exchangers, and other cooling systems use water to remove excess heat and maintain optimal operating temperatures, ensuring reliable and continuous operations.

Rising water scarcity could make it more challenging for data centers in Spain to secure sufficient water for cooling, particularly in water-stressed regions. This may increase operating costs and encourage operators to adopt alternative cooling technologies, including liquid cooling, air-based systems, and other water-efficient solutions to reduce dependence on water resources.

Growing Submarine Cable Connectivity

Spain is undergoing significant advancements in submarine and inland connectivity, with substantial investments and strategic partnerships being aimed at modernizing infrastructure and expanding digital access across the country

In 2025, the ongoing expansion of submarine cable infrastructure was playing a transformative role in the Spain data center market. These cables are critical for boosting international bandwidth and reducing latency, making Spain a strategic hub for global data flow and digital services in Europe.

As of February 2026, Spain has hosted around 30 operational submarine cables such as 2Africa, Africa Coast to Europe (ACE), Alpal-2, Balalink, Canalink, DOS CONTINENTES l & ll, Est-Tet, Grace Hopper, MAREA, Penbal-5, Subcan Link 1, Tenerife-Gran Canaria, TRANSCAN-2, and West Africa Cable System (WACS). The country continues to witness investment in around five more new submarine cables, which are expected to become operational by 2028.

The continued growth of submarine cable projects is estimated to lead to a brighter future for digital economy, fostering more equitable regional development and greater global integration in Spain.

Growing Adoption of Cloud Computing

In 2025, Spain emerged as a key market for data center investments, driven by the accelerating adoption of cloud services. Spanish enterprises and startups are increasingly adopting cloud platforms to support digital transformation, improve operational efficiency, reduce costs, and enable emerging technologies such as AI and Machine Learning (ML). This growing demand for cloud services is encouraging major cloud operators to expand their presence in the country.

The market has the presence of major cloud operators such as Amazon Web Services (AWS), Google, IBM Cloud, Microsoft, and Oracle Cloud, which continue to invest in expanding their operations. For instance, in March 2025, the government of Aragon announced that Microsoft would invest an additional $3 billion to develop a new data center campus in Zaragoza. We believe that the demand for cloud services in Spain will continue to increase, supported by ongoing business digitalization, the growing adoption of cloud-based applications, and the migration of organizational workloads to cloud platforms.